Troubled vacation planning firm reported a $13-million Q2 loss
MONTREAL—Transat AT Inc. has reached a cost-reduction agreement with another labour union, which has agreed to stall negotiated wage increases in order to help the money-losing company.
The Montreal-based travel and vacation provider says the International Association of Machinists and Aerospace Workers represents its maintenance and store personnel, and has agreed in principle to defer planned wage increases included in a contract that expires in April 2016.
In return for the concession, Transat is putting in place a compensation formula that will reward its unionized employees if the company attains certain financial targets.
Transat’s pilots and flight attendants have previously made similar concessions.
Transat reported a $13.2 million loss in the second quarter ended April 30.